If you are a seller or potential seller on Etsy, you may have heard of the term “conversion rate” many times. Everyone has their opinions on a decent conversion rate, and it can get confusing. Before we move on, let’s get one thing out of the way- what is a conversion rate?
A conversion rate measures the number of conversions (visitors who purchase) out of the total number of visitors to your site/shop. It shows you the rate of visitors becoming customers in your shop because not every visitor necessarily makes a purchase.
You may be wondering how a conversion rate impacts you as a seller and, if it’s important, what is considered a good and bad conversion rate? Get all your answers here (and maybe boost your sales!)
What Is A Good Conversion Rate On Etsy?
The average conversion rate on Etsy ranges from 1-3%, so a good conversion rate would be 2% to 3%. A conversion rate exceeding 3% is above average, so it’s considered great!
As a seller, it is advisable to aim for a conversion rate of 4%, which is the “magic number” for your shop. Obviously, anything above that is fantastic but rare.
If your conversion rates fall below the minimum average of 1%, it’s a clear indication to review your shop and make some changes. Do not be disheartened about low conversion rates; everyone starts somewhere. Hopefully, you will see increased conversion rates for your shop with the right methods and tips.
Why Do Conversion Rates Matter On Etsy?
One of the most important metrics of any e-commerce shop is conversion rates. Traffic data alone is insufficient to gauge a shop’s performance – what matters is converting these store visitors into paying customers.
To calculate the conversion rate, divide the total store traffic by the number of sales and multiply that number by 100%. For example, if 100,000 people visited your store, but there were only 1,000 sales, your conversion rate would be 1% (1,000 / 100,000 * 100%).
With conversion rates, you will know the quality of traffic and user experience of your shop. For instance, high website traffic but low conversion rates indicate that your site is highly attractive, but there are conversion pitfalls in the buying experience.
Common mistakes impeding conversion rates include slow loading speeds, complicated site structure, and unhelpful product descriptions.
So if you have yet to view your conversion rate on Etsy, now is time to take advantage of this helpful tool.
How Do I Calculate My Conversion Rate?
To calculate your conversion rate:
Conversion rate = Number of conversions divided by Total site visits (traffic) x 100%
The equation should help you understand conversion rates better. And no, you do not need to calculate your conversion rate on Etsy manually. Etsy will provide all the relevant statistics (conversion rate included) for sellers’ accounts. W
ondering where to find this page? Use this guide below to access your conversion rate info.
- Select Shop Manager on your Etsy account
- Select Stats (bar chart icon)
- Data and a graph will appear
- You will see the following info:
- Total Views
- Conversion rate
How Do I Increase My Conversion Rate?
Conversion rates are affected by various factors. Addressing these factors can improve your conversion rate, which means more sales revenue! Below, we laid out six tips that you can implement to improve your Etsy conversion rates.
1. Attractive Visuals
Think about how you shop online. What attracts you to a particular shop among the many others? The most likely answer is high-quality product images. Make sure you use good photos that display your product in the best way possible. The more attractive the photo, the more conversions you’ll have.
2. Shipping Options
Give your customers different shipping options. That way, they can decide how they wish to receive their product according to their needs.
3. Shopper Engagement
Be a responsive seller. Answer customers’ queries and feedback. Communication with your customers keeps them engaged and interested in your shop. You would be annoyed if no staff was present to answer your questions in a physical shop, right? Well, the same rule applies to an online shop.
4. Options of Payment Methods
Customers love convenience (that’s why they shop on Etsy). Be flexible with payment methods, and provide your customers with multiple options. Everyone has their preferences, and catering to that will keep customers coming.
5. Refund Policy
Customers want assurance when making purchasing decisions, and the best way to boost their confidence is a refund policy. Let potential customers know they can return a product if it has defects and provide a refund!
6. SEO (Search Engine Optimization)
Many overlook this essential factor for higher conversion rates. SEO is a process to optimize your shop or page to rank higher on SERPs (Search Engine Response Page). It involves using relevant keywords in your product description and listings.
SEO is a tool used in Google, but the concept applies to Etsy too. Optimizing your site for SEO is a worthwhile effort to bring more exposure to your shop. If you’re keen to learn SEO, here’s an SEO fundamental course to get started on.
Related Articles To Know More!
- Is Etsy Legit? (And Should You Shop There?)
- Can You Get Scammed On Etsy?
Being an Etsy seller can be rewarding but challenging as well. Finding ways to increase sales revenue can leave you scratching your head in confusion. However, understanding and using conversion rates is a good start to begin improving your Etsy business.
Every seller is different, so set a conversion rate you want to achieve for your shop. A good conversion rate is between 2-3%, but if you want to aim higher, go ahead! Review your shop and take into consideration factors that affect conversions.
Most importantly, do not rush the process. Take time and effort to improve your shop on Etsy, and you will have a higher chance of more conversions.
If you are a seller on Etsy, what are your tips to increase conversion rates? Let us know in the comments below!